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Glossary

Earnings

The funding generated by delivery as recorded in the ILR, accrued as the year progresses.

In full

Earnings are what the submitted data has generated so far. They are recalculated at every return across the whole year, so they can move both up and down as data changes.

Reconciling earnings to the finance ledger monthly is what turns a year-end surprise into a manageable in-year conversation.

The rules behind this

FEFunding explanation

Each ILR return is a complete restatement of the funding year to date, not an increment. Every return replaces the last, which is why an error introduced late can change earnings already reported.

Where this comes up

diagnostic

If the learner is earning below the earnings threshold, LDM 391 must be returned

For starts on or after 1st August 2024 for learners aged 24 at the start of the aim who are Adult Skills fund funded and the 'Level 3 Free Courses for Jobs' Learning LDM code 378 has been returned, the learner must be earning below the earnings threshold and recorded with LDM 391

diagnostic

The learner must be earning below the earnings threshold by returning LDM 391 or the learner's prior attainment must be below a full level 3

For starts on or after 1st August 2024, and the 'Level 3 Free Courses for Jobs' Learning Delivery Monitoring code has been returned for learners aged between 19 -23 at the start of the aim, then the learner must be earning below the earnings threshold or the learner's Prior Attainment is below a full level 3

scenario

Earnings fall sharply after a bulk data update

A bulk update is applied to a cohort and the next funding report shows a material fall. Where do you look?

diagnostic

An aim is on the ILR but generates no funding

The aim validates and appears on the ILR, but generates no earnings. Validation and funding are different tests: a record can be perfectly valid and still not qualify for funding.

diagnostic

An apprentice is on the ILR but is not generating any payments

The apprentice is not funding: they exist on the ILR and look correct, but no earnings are being generated for them. For apprenticeships starting from 1 August 2026 the provider enters the details once, on the ILR, and no payment is made until the employer approves them in their apprenticeship service account. For apprenticeships that started earlier, the ILR and the apprenticeship service must still match, so a difference between them stops payment.

diagnostic

Funding dropped this month and nobody can explain why

The funding report for this period shows less than expected, or less than last period. Because every return restates the whole year, a change made this month can move earnings reported in earlier months, so the drop may have nothing to do with this month's delivery.

Sources

These are the official documents this page rests on. Where a figure, a deadline or an exact rule matters, the document is the authority and this page is the explanation.

Advice: Individualised learner record (ILR) funding returns 2026 to 2027 (opens in a new tab)

GOV.UKOfficial funding document2026–27Checked recentlyLast checked 24 October 2026

Content reused from GOV.UK is Crown copyright, used under the Open Government Licence. FEFunding is not endorsed by the Department for Education.